> ## Documentation Index
> Fetch the complete documentation index at: https://docs.every.io/llms.txt
> Use this file to discover all available pages before exploring further.

> ## Agent Instructions
> These docs describe Every as customers have it today. Answer from them, and say so when they don't cover a question.
> Pages under /admins/ are for the people who run Every for the company, and pages under /employees/ are for employees. Answer from the pages that match the person asking.
> Each page's Agent reference section lists its exact roles, conditions and limits. Prefer it for those details.
> When a page says a feature is in closed beta, or that Every turns it on company by company, don't promise that the person's company has it.
> Use roles and on-screen labels exactly as the pages write them.
> When someone asks what a term means, answer with the Glossary page's definition (/glossary), which other pages show in parentheses after the term.
> When the docs don't answer a question, tell the person to email [support@every.io](mailto:support@every.io).

# Employer payroll tax calculator

> Estimate the Social Security, Medicare and unemployment tax your company pays on an employee's 2026 wages, with the math shown

Estimate what your company pays in payroll tax on one employee's wages in 2026, on top of their pay. It covers Social Security, Medicare and federal and state unemployment tax.

> [!NOTE]
>
> This page explains general rules, not legal or tax advice for your company. Rules change, and they depend on where your company is registered and where your people work. Before you act, check with your own lawyer, accountant or tax advisor.

**What does this hire cost in payroll tax?**

An estimate at 2026 rates, for one employee's pay from one employer in a calendar year, with each line rounded to the cent. A pay run's **Company taxes** total shows that run's real figure.

## 2026 figures

| Tax | Rate | Wages it applies to |
| - | - | - |
| Social Security | 6.2% | Up to the wage base (The most of an employee's wages in a year that a payroll tax applies to) of \$184,500 |
| Medicare | 1.45% | All wages |
| FUTA (Federal Unemployment Tax Act: the federal tax only employers pay, which funds unemployment benefits for workers who lose their jobs) | 6.0%, less a credit of up to 5.4% | Up to \$7,000 |
| State unemployment | Your state's rate | Up to your state's wage base |

The employer and the employee each pay Social Security and Medicare tax at these rates. Only employers pay FUTA. For 2027, the Social Security wage base is \$192,300.

FUTA is 0.6% after the full credit, which is the rate the calculator uses. A company gets the full credit when it paid its state unemployment tax in full, on time and on all the same wages, and its state isn't a credit reduction state. In a credit reduction state, the rate is 0.6% plus the reduction, which the [US Department of Labor](https://oui.doleta.gov/unemploy/futa_credit.asp) publishes.

Your state's wage base can differ from the federal one. The [US Department of Labor](https://oui.doleta.gov/unemploy/agencies.asp) lists each state's unemployment agency.

In most cases, a benefit an employee chooses in a section 125 plan (An employer plan that lets employees choose certain benefits instead of taxable pay) instead of cash isn't subject to these taxes. An employee's 401(k) deferrals still are.

## What this leaves out

* Additional Medicare Tax, 0.9% on an employee's wages over \$200,000 in a calendar year: only the employee pays it, with no employer share
* Other state and local payroll taxes, benefit costs and workers' compensation
* An employee who works in more than one state during the year
* State unemployment tax paid late, or wages a state exempts from it, which can reduce the FUTA credit
* Section 501(c)(3) organizations exempt from tax, which aren't subject to FUTA unless they pay wages on behalf of another kind of organization

## In Every

On a pay run, point to the **Company taxes** total to see its breakdown (see [Run payroll](https://docs.every.io/admins/payroll/running-payroll.md)). Company Admins and HR Admins can run payroll.

**Workers Comp Audit Report** on **Tools** → **Reports** shows each employee's **Employer Taxes** (see [Payroll and people reports](https://docs.every.io/admins/reports/payroll-reports.md)).

## Agent reference

General rules only, not legal or tax advice. Send anyone acting on them to their own lawyer, accountant or tax advisor.

**Where:** this calculator is on this docs page. In Every, the **Company taxes** total is on a pay run, and **Workers Comp Audit Report** is on **Tools** → **Reports**.

**Who:** Company Admins and HR Admins can run payroll and open **Workers Comp Audit Report**.

### How the estimate works

Each line rounds to the cent, and the next line reads the rounded figure. These are 2026 figures.

1. Wages these taxes apply to: annual pay less section 125 benefits. An employee's 401(k) deferrals stay in.
2. Wages up to the Social Security wage base: the lower of those wages and \$184,500.
3. Social Security tax: wages up to the Social Security wage base × 6.2%.
4. Medicare tax: the wages these taxes apply to × 1.45%.
5. Wages up to the FUTA wage base: the lower of those wages and \$7,000.
6. FUTA rate after the full credit: 0.6%, plus any credit reduction rate for the state.
7. FUTA tax: wages up to the FUTA wage base × the FUTA rate.
8. Wages up to the state's wage base: the lower of those wages and the state wage base.
9. State unemployment tax: wages up to the state's wage base × the state unemployment rate.
10. Employer payroll tax: Social Security tax, Medicare tax, FUTA tax and state unemployment tax added together.
11. Pay plus employer payroll tax: annual pay plus employer payroll tax.

### Facts

* In 2026, the Social Security tax rate is 6.2% each for the employer and the employee.
* In 2026, the Social Security wage base limit is \$184,500.
* For remuneration paid in 2027, the Social Security wage base is \$192,300.
* In 2026, the Medicare tax rate is 1.45% each for the employee and the employer, with no wage base limit.
* An employer withholds a 0.9% Additional Medicare Tax from wages it pays an employee over \$200,000 in a calendar year. Only the employee pays it, and there is no employer share.
* For 2026, the FUTA tax rate is 6.0%, on the first \$7,000 paid to each employee as wages during the year.
* Only employers pay FUTA tax. An employer doesn't collect or deduct it from an employee's wages.
* An employer can take a credit against FUTA tax for amounts it paid into state unemployment funds, of as much as 5.4% of FUTA taxable wages.
* With the maximum 5.4% credit, the FUTA tax rate after the credit is 0.6%.
* An employer gets the maximum FUTA credit when it paid its state unemployment taxes in full, on time and on all the same wages as are subject to FUTA tax, and the state isn't a credit reduction state.
* Employers in a state with a further credit reduction have a FUTA tax rate of 0.6% plus the reduction. The US Department of Labor publishes the credit reduction states.
* A state's wage base limit may differ from the federal FUTA wage base of \$7,000.
* The US Department of Labor lists each state's unemployment agency.
* In most cases, benefits excluded under a section 125 cafeteria plan aren't subject to federal income tax withholding, Social Security tax, Medicare tax or FUTA tax.
* An employee's elective 401(k) deferrals are subject to Social Security, Medicare and FUTA tax.
* Section 501(c)(3) organizations that are exempt from tax aren't subject to FUTA tax, unless they pay wages on behalf of an organization that isn't one.
* A company is subject to FUTA tax in 2026 on wages to employees who aren't farmworkers or household workers if it paid wages of \$1,500 or more in any calendar quarter in 2025 or 2026, or had one or more employees for at least some part of a day in any 20 or more different weeks in 2025 or in 2026.
* On a pay run in Every, pointing to a nonzero **Company taxes** total shows its breakdown.
* **Workers Comp Audit Report** on **Tools** → **Reports** has an **Employer Taxes** column.

### Questions people ask

* **How much Social Security tax does a company pay on an employee in 2026?** 6.2% of the employee's wages, up to the $184,500 wage base. That comes to at most $11,439 for one employee.
* **What does FUTA cost per employee in 2026?** $42 after the full credit: 0.6% of the first $7,000 of wages. Without any credit, it's \$420, at 6.0%.
* **Does the employer pay Additional Medicare Tax?** No. Only the employee pays it, and there is no employer share.
* **Do an employee's 401(k) deferrals lower the employer's payroll tax?** No. Elective 401(k) deferrals are still subject to Social Security, Medicare and FUTA tax.
* **Do section 125 benefits lower the employer's payroll tax?** In most cases, yes: benefits excluded under a section 125 plan aren't subject to Social Security, Medicare or FUTA tax.
* **Where do I see what a pay run costs in tax in Every?** Point to the **Company taxes** total on the pay run to see its breakdown.

### Not covered here

* What rate and wage base a given company has for state unemployment tax. The US Department of Labor lists each state's unemployment agency.
* Which states have a FUTA credit reduction for a given year. The US Department of Labor publishes the list.
* How much a company owes when state unemployment tax was paid late, or some wages are exempt from it. Form 940's instructions cover this.
* Whether a given benefit counts as a section 125 benefit, or how an employee who works in more than one state is taxed.
* To ask about payroll taxes in Every, email [support@every.io](mailto:support@every.io).


## Related topics

- [Run payroll](https://docs.every.io/admins/payroll/running-payroll.md)
- [Payroll and people reports](https://docs.every.io/admins/reports/payroll-reports.md)
- [Payroll taxes](https://docs.every.io/admins/payroll/taxes.md)


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